State Farm is Outta There: Insurance Company Will Stop Accepting Applications for New Properties in California
In a recent development, State Farm has made an announcement stating that they are no longer accepting applications for any insurance policies in California. Simultaneously, Allstate has taken a cautious approach by "pausing" new homeowners’ insurance and HOA insurance policies to safeguard the interests of existing customers. The decision comes amid the backdrop of soaring property insurance rates in California, prompting HOAs to explore alternative options like the "bare walls" approach. With the "bare walls" approach gaining traction, HOAs are contemplating a shift towards obtaining insurance that restores damaged homes to a shell condition, leaving the responsibility for interior buildouts to homeowners. However, experts advise that before making such a significant change, HOAs should gather bare walls quotes, seek legal counsel, and take other beneficial steps to ensure a smooth transition. Typically, most condominiums insure the entire building and its contents as stipulated by the CC&Rs. Additionally, attached, planned development HOAs, where homeowners own both the structures and the land underneath, but the homes are interconnected in a townhome or patio homestyle, also follow a similar practice of insuring the entire building and interiors. As the California insurance landscape evolves, HOAs are proactively assessing their options to best protect their communities and navigate the complexities of the current insurance market. The decisions made by State Farm and Allstate are sending ripples through the industry, prompting a careful evaluation of insurance plans to ensure the continued well-being of homeowners and their properties.